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    villamella58's Avatar
    villamella58 Posts: 3, Reputation: 1
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    #1

    Oct 25, 2008, 03:53 AM
    Linear programming
    Linear Programming Problem
    I have been trying to solve a linear programming problem for Weenies and Buns. Which contains the following information.
    Constraints
    Grind flow for hotdogs = 200lbs per week
    Pigland delivers 800 lbs of pork product every Monday.
    hours worked per week by employees =40 each = 5*40=200
    Labor = 5 employees

    Each hot dog requires 2 minutes of labor
    Each hot dog bun requires 2 minutes of labor.
    Each hot dog yields $0.20 in profit
    Each bun yields $0.10 in profit

    Each hot dog requires 1/4 lbs of pork product.
    Each hotdog requires = 0.1 pound of flour

    I have all of this information However, I do not know how to setup my spreadsheet. I was thinking on using the Wyndor spreadsheet format. Any suggestions
    Your assistance will be appreciated.

    Thank you.
    Credendovidis's Avatar
    Credendovidis Posts: 1,593, Reputation: 66
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    #2

    Oct 26, 2008, 05:33 AM
    Grind flow for hotdogs = 200lbs per week
    Pigland delivers 800 lbs of pork product every Monday.
    hours worked per week by employees =40 each = 5*40=200
    Labor = 5 employees
    Each hot dog requires 2 minutes of labor
    Each hot dog bun requires 2 minutes of labor.
    Each hot dog yields $0.20 in profit
    Each bun yields $0.10 in profit
    Each hot dog requires 1/4 lbs of pork product.
    Each hotdog requires = 0.1 pound of flour

    ===

    May be I understand your question incorrect, but how can your output be 200 lbs/week while your pork input is 800 lbs/week ?

    To help you with setting up your columns :

    First columns the cost to make the product, i.e. bun, meat, any other items required.
    Than a series of columns for indirect costs, i.e. employees, rent, electricity, water, machinery, etc.
    Total your costs, add your profit, and you have the selling price for all hot dogs.

    The question is if that is realistic : the selling price of a hotdog is more or less market controlled.

    Marketing ideas :
    What gimmicks can you add to raise your price of hotdogs?
    Different packaging? Different sauces? Different presentation? Sauerkraut?
    You have to play with these thoughts to come to a max. profit for a reasonable selling price.

    Another thought : raising the output of hotdogs (if you can sell them) : there are optimal numbers above which you require more staff to produce these.

    So before starting your spreadsheet, you should rethink the entire plan and start from a realistic selling plan : start with the quantities the market can carry, and work back from that. Profit is important, but the last in line to start with. Unless you know your realistic expected selling numbers you are no-where.

    Success .

    :)

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